THE INFLUENCE OF LIQUIDITY, SOLVENCY, AND PROFITABILITY RATIOS ON FIRM VALUE (A CASE STUDY: PT BARAMULTI SUKSESSARANA TBK)

Abstract

This research aims to analyze and test the simultaneous and partial effects of Liquidity Ratio (measured by Current Ratio), Solvency Ratio (measured by Debt to Equity Ratio), and Profitability Ratio (measured by Return on Equity) on Firm Value (measured by Price to Book Value) at PT Baramulti Suksessarana Tbk (BSSR) during the period 2015 to 2024. The type of research used is descriptive quantitative. The data utilized is secondary data in the form of annual financial reports obtained from the company's official website and the Indonesia Stock Exchange (IDX). The analysis technique applied is multiple linear regression analysis with hypothesis testing (t-test and F-test) to examine the significance of the independent variables' effect on the dependent variable. The results indicate that, simultaneously, the Liquidity, Solvency, and Profitability Ratios have a significant effect on Firm Value. Meanwhile, the results of the partial test (t-test) show that the Profitability Ratio has a positive and significant effect on Firm Value. However, the Liquidity Ratio and the Solvency Ratio were not proven to have a significant partial effect on Firm Value. These findings suggest that for investors of PT Baramulti Suksessarana Tbk, profitability is the main factor considered in assessing stock prices and the company's prospects. The company's management is advised to prioritize increasing operational efficiency to maximize profits and enhance market confidence.